Appraisal Reporting Requirements UPDATE (Uniform …

1 External Circular 2013-11 Appraisal Reporting Requirements - UAD - UPDATE 041213 Page 1 of 4 2013, LandSafe, Inc LandSafe Proprietary Appraisal Reporting Requirements UPDATE ( uniform Appraisal dataset (UAD)) Circular No.: 2013-11 Date: April 12, 2013 Distribution: Staff Appraisers/Reviewers Fee Panel Appraisers Vendor Management Companies Effective: April 12, 2013 This is an UPDATE to the 2013-02 UAD Completion Requirements circular published February 7, 2013. This circular updates prior issuance and includes an overview of some of the primary UAD field completion Requirements necessary to successfully submit the Appraisal and avoid Draft Not Acceptable (DNA) status.

2 Fannie Mae and Freddie Mac have implemented uniform Appraisal dataset (UAD) Appraisal field Reporting Requirements for Appraisal assignments utilizing the 1004/70, 1073/465, 2055 and 1075/466 Appraisal forms. Bank of America has adopted UAD standards on Appraisal assignments completed on these forms to ensure consistency in the application of underwriting and automation rules. UAD Completion Requirements Completeness Rules The Requirements outlined in this circular will be enforced with automated completeness rules when UAD is required. Completeness rules are used to ensure specific Appraisal field compliance.

3 If not satisfied, the Appraisal will be flagged as Draft Not Acceptable (DNA) and will require resubmission with appropriate revisions. Note: Due to conflicts and lack of clarity with various UAD fields, our completeness instructions will be revised periodically to coincide with updates provided by the GSE s. UAD Required Appraisal Assignments When UAD is required, the following statement should appear at the top of the engagement letter: This report must be completed in compliance with the uniform Appraisal dataset (UAD). 2013-11 Appraisal Reporting Requirements - UAD - UPDATE 041213 Page 2 of 4 2013, LandSafe, Inc LandSafe Proprietary New Information UAD Rules to be Released 4/13/2013 Fannie Mae released new UAD warnings on January 28, 2013 to monitor additional Appraisal fields for UAD compliance.

4 On April 13, 2013, LandSafe is activating the additional completeness rules below in order to ensure UAD compliance. Appraisal reports not in compliance with required formatting will be placed in Draft Not Acceptable (DNA). If there are any questions regarding these rules or for examples of proper UAD formatting, please refer to LandSafe s UAD and Other Tips for Successful Appraisal Submission job aid link at the end of this circular. Site Area: The subject s site area in the Sales Comparison grid must equal the site area for the subject in the site section on page 1 of the Appraisal report. For sites/parcels that have an area of less than one acre, the size must be reported in square feet.

5 Do not enter a comma (,). Correct entry: 24000 sf For sites/parcels that have an area of one acre or greater, the size must be reported in acreage to two decimal places. The unit of measure must be indicated as either sf for square feet or ac for acres (no period or spelled out abbreviation is allowed). A numeric value must be entered followed by the appropriate unit of measure. Formatting Example: 27840 sf (no comma (,) in square footage) ac Pass Example: Total Number of Rooms, Bedrooms and Bathrooms: The subject s total room number, number of bedrooms and number of bathrooms on the Sales Comparison grid must match the 2013-11 Appraisal Reporting Requirements - UAD - UPDATE 041213 Page 3 of 4 2013, LandSafe, Inc LandSafe Proprietary total room number, number of bedrooms and number of bathrooms reflected in the subject s improvement section on page 1 of the Appraisal report.

6 Transaction Amounts equal to or greater than $1 million: The appraiser must hold a State Certified Residential Appraisal License if the transaction amount is $1 million or more. Transaction amount is defined as the Sales Price, Estimated Value, or Loan Amount associated to the order. New Information Research and Reporting of Prior Sales History Research of the prior sales history for the subject and the comparables is expected. Location in a non disclosure state may limit the available resources but is not a valid reason for not researching the sales history of the subject or comparables.

7 Appraisal reports with did not checked will go into Draft Not Acceptable (DNA) for review. The appraiser must report the date(s) of prior sales(s) or transfer(s) of the subject property for the 3 years prior to the effective date of the Appraisal . The appraiser must report the date(s) of the prior sale(s) or transfer of any comparable property during the 12 months prior to its date of sale. The correct box is to be checked based on the prior sale date for the subject or the comparable. If the prior sale dates fall outside of 36 months for the subject or 12 months for the comparables, Did Not would be the correct box to check.

8 Do not use the prior sales history fields to report any other information including the complete sale date (mm/dd/yyyy) for the comparables. This information should be reported elsewhere in the report. If the price of prior sale is not disclosed in the public records or otherwise not available to the appraiser within the normal course of business, the sale price field is to be left blank with a comment provided explaining the lack of complete information. Non-monetary entries such as unknown , none , unavailable , etc. are not permitted in this field. 2013-11 Appraisal Reporting Requirements - UAD - UPDATE 041213 Page 4 of 4 2013, LandSafe, Inc LandSafe Proprietary LandSafe Tips for a Successful Submission Click on the following link to obtain the most recent UAD and Other Tips for a Successful Appraisal Submission job aid.

9 This is the most comprehensive reference source for UAD compliance and the most recent version will be available in the link in the Engagement Letter and in future communications. We recommend saving the link as a Favorite on your computer for ease of reference. Link to Revised Fannie Mae and Freddie Mac UAD Standards Read the UAD Specification Appendix D. Field-Specific Standardization Requirements to see GSEs Appendix D, which contains a description of the field-specific Requirements . Review GSE s uniform Appraisal dataset UPDATE released on June 19, 2012 for new Appendix D information. Questions Should you need additional clarification or have questions, please contact the Resolution Assistance Team at